Global equity funds continued to see outflows in the seven days to Sept. 14, as a higher-than-expected reading of US inflation fueled bets that the Federal Reserve would remain aggressive in raising interest rates for longer.
Some investors had expected the US CPI report in August to show a decline in inflation and provide a path for the Fed to moderate its policy tightening.
Investors sold net $13.11 billion in global equity funds after withdrawing a net $23.02 billion in the previous week, data from Refinitiv Lipper shows.
Sentiment also weighed on the risk of a global recession due to simultaneous rate hikes by major central banks, including the Fed, the European Central Bank and the Bank of England, to contain ongoing inflation.
US and European equity funds saw outflows of $10.52 billion and $2.74 billion respectively, but Asia saw inflows of about $740 million.
Of the sector funds, technology, communications services and financial institutions posted outflows of $1.15 billion, $611 million and $350 million, respectively, but consumer goods attracted $1.38 billion in inflows.
Meanwhile, net bond fund sales fell to a four-week low of $725 million.
Outflows from high-yield bond funds were down 96% from a week ago to $165 million, although net sales in short- and medium-term funds rose 29% to $1.48 billion.
However, government bond funds remained in demand for a third week with inflows of $4.85 billion.
Data showed that money market funds had a net sales value of $17.95 billion after posting weekly inflows.
In commodities, energy funds received a marginal $14 million in a second consecutive week of net purchases, but precious metals funds were out of favor for a 12th week with $794 million in revenue.
An analysis of 24,516 emerging market funds showed that equity funds saw $989 million in net sales, while bond funds lost $1.35 billion in a fourth straight week of outflows.
(This story was not edited by DailyExpertNews staff and was generated automatically from a syndicated feed.)